Stamp duty on share transfer

billythefish

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Hi all

Am I right in my understanding that the transfer of shares of a company with net of assets less than €1,000 is not stampable?

I should also point out that the transfer took place before 24th December 2008.

Any help is appreciated.
 
Last edited:
Well if you know about 24 December 2008, then I suspect you are clutching at straws here! Because you've probably already read this:


The Finance (No.2) Act 2008, which was enacted on 24 December 2008, includes the following provision in section 87 which has been introduced in order to reduce the administrative burden on taxpayers and their agents by removing certain low yielding instruments from the stamping process.
Any instrument executed on or after 24 December 2008 which transfers stock or marketable securities on sale where the amount or value of the consideration is €1,000 or less, is exempt from stamp duty. To avail of the exemption (from the maximum stamp duty charge of €10) the instrument must be certified as follows:
"It is hereby certified that the transaction effected by this instrument does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration which is attributable to stocks or marketable securities exceeds €1,000."

So that is the position for transfers AFTER 24/12/2008, and for any transfers prior to that date the form SD4 must be submitted for adjudication, and the relevant amount of stamp duty (and in your case possibly a surcharge) should be paid.

Also, your understanding about "net assets of less than €1,000 is not stampable" is not exactly correct. It is the value of the shares being transferred that determine the liability to stamp duty - for example you may have a company whose net assets, per the historical cost balance sheet are less than €1,000, but in reality has net assets at market value worth substantially more. So it is the market value (or in the case of a private limited company whose shares cannot be openly traded, as close an approximation to a market value as can be estimated) that determines the value for stamping purposes.

Sorry to be the bearer of ill tidings...!
 
Hi Mandelbrot. Thanks for your reply. I had seen that on the Revenue website but, silly me, the transfer actually took place in Feb 09. I'm a year ahead of myself.

So, just to make sure I'm right.... I don't need to send anything into Revenue. I just complete the stock transfer form and attach the above declaration (signed by transferor and transferee) to it and keep it on file??

Sounds too good to be true!
 
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